0001628280-15-008039.txt : 20151029 0001628280-15-008039.hdr.sgml : 20151029 20151029170958 ACCESSION NUMBER: 0001628280-15-008039 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20151029 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20151029 DATE AS OF CHANGE: 20151029 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GULF ISLAND FABRICATION INC CENTRAL INDEX KEY: 0001031623 STANDARD INDUSTRIAL CLASSIFICATION: FABRICATED STRUCTURAL METAL PRODUCTS [3440] IRS NUMBER: 721147390 STATE OF INCORPORATION: LA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-34279 FILM NUMBER: 151184557 BUSINESS ADDRESS: STREET 1: GULF ISLAND FABRICATION INC STREET 2: 583 THOMPSON RD CITY: HOUMA STATE: LA ZIP: 70361 BUSINESS PHONE: 5048722100 MAIL ADDRESS: STREET 1: P O BOX 310 CITY: HOUMA STATE: LA ZIP: 70361 8-K 1 gifi-09302015x8k.htm THIRD QUARTER PRESS RELEASE 8-K


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): October 29, 2015
GULF ISLAND FABRICATION, INC.
(Exact name of registrant as specified in its charter)
Louisiana
001-34279
72-1147390
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
16225 Park Ten Place, Suite 280
Houston, Texas 77084
 (Address of principal executive offices)(Zip Code)
(713) 714-6100
(Registrant's telephone number, including area code)
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))




Item 2.02    Results of Operations and Financial Condition.
On October 29, 2015, Gulf Island Fabrication, Inc. issued a press release announcing third quarter 2015 earnings. A copy of the press release is attached as Exhibit 99.1.


Item 9.01    Financial Statements and Exhibits.
            (c) Exhibits        
The following exhibit is filed herewith:
 
 
Exhibit No.
Description
99.1
Press Release dated October 29, 2015


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
 
GULF ISLAND FABRICATION, INC.
 
 
 
 
 
 
By:
/s/ Kirk J. Meche
 
 
 
Kirk J. Meche
 
 
 
President and Chief Executive Officer
 
 
 
 
Dated:
October 29, 2015
 
 



 EX-99.1 2 pressrelease3q2015.htm EXHIBIT 99.1 Exhibit


NEWS RELEASE                                             
                                                 
For further information contact:
Kirk J. Meche                                    Jeffrey M. Favret
Chief Executive Officer                          Chief Financial Officer
713.714.6100                                    713.714.6100

FOR IMMEDIATE RELEASE
Thursday, October 29, 2015
 
GULF ISLAND FABRICATION, INC.
REPORTS THIRD QUARTER EARNINGS
 
Houston, TX - Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported a net loss of $12.1 million ($(0.84) diluted loss per share) on revenue of $67.5 million for its third quarter ended September 30, 2015, compared to net income of $7.6 million ($0.52 diluted income per share) on revenue of $118.0 million for the third quarter ended September 30, 2014.
 
The company had a revenue backlog of $135.1 million and a labor backlog of approximately 1.3 million hours at September 30, 2015, including commitments received through October 26, 2015, compared to a revenue backlog of 126.2 million and a labor backlog of 1.3 million hours reported as of June 30, 2015. We expect to recognize revenue from our backlog of approximately $62.8 million and $72.3 million during the remainder of 2015 and during 2016, respectively.
 
 
September 30,
2015
 
December 31,
2014
 
(in thousands)
 
 
 
 
Cash and cash equivalents
$
45,301

 
$
36,085

Total current assets
127,267

 
172,495

Property, plant and equipment, net
211,355

 
224,777

Total assets
339,296

 
397,943

Total current liabilities
33,209

 
72,765

Total shareholders’ equity
$
272,557

 
$
285,798


•
Included in the net loss for the quarter ended September 30, 2015 were the following:

-
$6.6 million ($4.4 million after-tax, or $0.30 per share) for a non-cash asset impairment charge related to assets held for sale associated with a partially constructed topside, related valves, piping and equipment that we acquired from a customer following its default under a contract for a deepwater project in 2012. This adjustment is due to the sustained downturn in the Oil and Gas sector significantly limiting our ability to effectively market the assets.

-
$14.3 million ($9.5 million after-tax, or $0.65 per share) related to our inability to recover certain costs related to a large deepwater project which was recently delivered.

•
Our balance sheet position remains stable with $45.3 million in cash, no debt, and working capital of $94.1 million. In addition, we have $59.5 million available under our credit facility. We will continue to monitor and maintain a conservative capital structure as we navigate through the current oil and gas downturn.

The management of Gulf Island Fabrication, Inc. will hold a conference call on Friday, October 30, 2015, at 9:00 a.m.
Central Time (10:00 a.m. Eastern Time) to discuss the Company’s financial results for the quarter ended September 30, 2015. The call is accessible by webcast (www.gulfisland.com) through CCBN and by dialing 1.888.263.2834. A digital rebroadcast of the call is available two hours after the call and ending November 6, 2015 by dialing 1.888.203.1112, replay passcode: 1977713.





Gulf Island Fabrication, Inc., based in Houston, Texas, with fabrication facilities located in Houma, Louisiana, and San Patricio County, Texas, is a leading fabricator of offshore drilling and production platforms, hull and/or deck sections of floating production platforms and other specialized structures used in the development and production of offshore oil and gas reserves. These structures include jackets and deck sections of fixed production platforms; hull and/or deck sections of floating production platforms (such as tension leg platforms “TLPs”, “SPARs”, “FPSOs”, and “MinDOCs”), piles, wellhead protectors, subsea templates and various production, compressor and utility modules, offshore living quarters, towboats, liftboats, tanks and barges. The Company also provides offshore interconnect pipe hook-up, inshore marine construction, manufacture and repair of pressure vessels, heavy lifts such as ship integration and TLP module integration, loading and offloading of jack-up drilling rigs, semi-submersible drilling rigs, TLPs, SPARs, or other similar cargo, onshore and offshore scaffolding, piping insulation services, and steel warehousing and sales.





GULF ISLAND FABRICATION, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)
 
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
June 30,
 
September 30,
 
September 30,
 
2015
 
2014
 
2015
 
2015
 
2014
Revenue
$
67,531

 
$
118,020

 
$
84,338

 
$
251,102

 
$
381,879

Cost of revenue
75,368

 
103,367

 
78,533

 
248,686

 
348,131

Gross (loss) profit
(7,837
)
 
14,653

 
5,805

 
2,416

 
33,748

General and administrative expenses
3,798

 
3,307

 
3,726

 
11,817

 
10,553

Asset impairment
6,600

 
—

 
—

 
6,600

 
—

Operating (loss) income
(18,235
)
 
11,346

 
2,079

 
(16,001
)
 
23,195

Other income (expense):
 
 
 
 
 
 
 
 
 
Interest expense
(39
)
 
(23
)
 
(50
)
 
(126
)
 
(72
)
Interest income
8

 
1

 
7

 
21

 
6

Other income (expense)
—

 
(2
)
 
17

 
20

 
(98
)
 
(31
)
 
(24
)
 
(26
)
 
(85
)
 
(164
)
(Loss) income before income taxes
(18,266
)
 
11,322

 
2,053

 
(16,086
)
 
23,031

Income taxes
(6,129
)
 
3,736

 
696

 
(5,389
)
 
7,600

Net (loss) income
$
(12,137
)
 
$
7,586

 
$
1,357

 
$
(10,697
)
 
$
15,431

Per share data:
 
 
 
 

 
 
 
 
Basic and diluted (loss) earnings per share - common shareholders
$
(0.84
)
 
$
0.52

 
$
0.09

 
$
(0.74
)
 
$
1.05

Cash dividend declared per common share
$
0.10

 
$
0.10

 
$
0.10

 
$
0.30

 
$
0.30





GULF ISLAND FABRICATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 
 
Nine Months Ended September 30, 2015
 
 
2015
 
2014
 
(in thousands)
Cash flows from operating activities:
 
 
 
Net (loss) income
$
(10,697
)
 
$
15,431

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Bad debt expense (recovery)
400

 
(475
)
Depreciation
19,674

 
19,693

Asset impairment
6,600

 
—

(Gain) loss on sale of asset
(10
)
 
85

Deferred income taxes
(5,464
)
 
6,945

Compensation expense - restricted stock
1,863

 
917

Changes in operating assets and liabilities:
 
 
 
Contracts receivable and retainage
43,501

 
16,878

Costs and estimated earnings in excess of billings on uncompleted contracts
(237
)
 
2,924

Prepaid expenses and other assets
2,072

 
1,874

Inventory
508

 
869

Accounts payable
(25,402
)
 
(31,779
)
Billings in excess of costs and estimated earnings on uncompleted contracts
(13,494
)
 
(15,186
)
Accrued employee costs
343

 
949

Accrued expenses
(2,369
)
 
136

Accrued contract losses
1,367

 
412

Current income taxes
—

 
642

Net cash provided by operating activities
18,655

 
20,315

Cash flows from investing activities:
 
 
 
Capital expenditures
(5,052
)
 
(26,712
)
Proceeds on the sale of equipment
10

 
934

Net cash used in investing activities
(5,042
)
 
(25,778
)
Cash flows from financing activities:
 
 
 
Borrowings against line of credit
—

 
22,000

Payments on line of credit
—

 
(22,000
)
Payments of dividends on common stock
(4,397
)
 
(4,399
)
Net cash used in financing activities
(4,397
)
 
(4,399
)
Net change in cash and cash equivalents
9,216

 
(9,862
)
Cash and cash equivalents at beginning of period
36,085

 
36,569

Cash and cash equivalents at end of period
$
45,301

 
$
26,707